Ran into this very problem, but after some tinkering fixed it. Problem occurs if you add spaces to line up the text. Don't just add the Option "Coolbits" "1" and leave it be.

You'll also have to restart your xserver, ie reboot or if your technical ctrl+alt+f1 to a console and sudo /etc/init.d/gdm stop. Gdm stands for gnome display manager so if you use KDE it would be kdm instead, or xdm for x display manager. It should say it stopped on the right hand side. Then just sudo gdm, to start it back up.

Sudo is a command to execute as a root under Ubuntu linux and thus might not work for other distros so basically if you dont have ubuntu just become root and do all this stuff.